Gambling Vs. Investing

Although it is common for skeptics to link the two, there are some important things to look at in gambling vs. investing. The thought that investing is akin to gambling is a widely-held bit of misinformation. And, it is this misinformation that keeps countless people from making wise choices about their money.

We understand that there are some rather superficial similarities between the two. However, there is a good deal of difference in the principles. Investing is defined as putting your money to use, whereas gambling is defined as playing a game of chance while risking money. But, if you still insist on gambling, you probably never knew football prediction sites exist. They do, and you are welcome to risk your money with the experts who look at various algorithms to make their predictions. However, you really need to understand what’s best for your money.

Consider Gambling First

If you have ever tried your hand at cards, or slots, you undoubtedly spent a good deal of time losing. This is because the “house” always has a mathematical advantage over the person playing their games. In the long run, the odds are that the player, also considered a gambler, will lose.

If you need some proof, we would like you to look at some of the odds attached to these games of chance found in casinos. Of course, every casino has variable odds, but the overall concept is similar. By looking at these odds you will see that those participating in these games are at a distinct disadvantage. The percentage following the name of the game shows you the house’s (casino’s) advantage:

Caribbean Stud Poker- 5.22%

Roulette, double zero- 5.26%

Blackjack, eight decks- 0.63%

Slot Machines- 15.20%

Video Poker- 5%

Craps- 1.41%

Baccarat- 1.36%

You might be shocked to learn that in sports betting the odds are similarly stacked against you if you choose to risk your money on your favorite sports team, or the horses. Even the smartest, most experienced gamblers are still at a disadvantage. Of course, that doesn’t account for the luck factor, but it’s fickle and wholly unpredictable. Learn more.

Now Let’s Think About Investing

Those who gamble own nothing in the midst of their choices. However, when you invest in stock, you own that stock. Or, better explained, you own a share of the company whose stock you have invested in. As the company profits, so do you via the dividends it issues.

And, if the price of the stock goes up, you can always sell at a profit. While the stock market has some variability, the trend has generally been up. So, those people who have chosen to buy and hold their stocks have been rewarded with profits over time. But stocks aren’t the only investment options available. Bonds and real estate are also advisable investments. While there is still some risk in either category the long term holding of these entities typically generates profit.

Of course, most financial advisors will suggest that you don’t put all your eggs in one basket. They suggest having a diversified portfolio. Securing different investment products protects you whenever one market experiences a downturn due to changes in the economy. You can learn more about diversifying your portfolio here.

Given the comparison, it should be easy to see why gambling as a means of profitability is probably not in your best interest. So, if you choose to bet on your favorite horse or team, make sure it’s more about the fun and not about the hope of financial rewards. Investing is your best option for that. Read more.